Press Release

Semiconductor Foundry Market to Grow with a CAGR of 7.1% Globally through to 2028.

Global semiconductor foundry market is rising due to increasing demand for advanced microchips in various industries, such as electronics, automotive, and telecommunications in the forecast period 2024-2028.

 

According to TechSci Research report, “Global Semiconductor Foundry Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, The global semiconductor foundry market is experiencing significant growth, driven by a confluence of factors that underscore its pivotal role in the modern digital economy. Semiconductor foundries, specializing in the fabrication of integrated circuits (ICs), have become the linchpin for innovation across a multitude of industries. The relentless pursuit of miniaturization and performance enhancement in electronics, coupled with the emergence of transformative technologies like 5G, artificial intelligence (AI), and the Internet of Things (IoT), has led to an insatiable demand for advanced microchips. Furthermore, the rising complexity and cost of semiconductor manufacturing processes have prompted an increasing number of fabless semiconductor companies and integrated device manufacturers (IDMs) to outsource their fabrication needs to foundries. This strategic shift has spurred the growth of foundry services, making them a vital ecosystem player. Companies like TSMC, GlobalFoundries, and Samsung Foundry have risen to prominence, catering to a broad spectrum of semiconductor applications.

 

Browse over 26 market data Figures spread through 91 Pages and an in-depth TOC on "Global Semiconductor Foundry Market”.

 

The Global Semiconductor Foundry Market is a dynamic and rapidly growing industry that plays a crucial role in the semiconductor ecosystem. Semiconductor foundries are specialized companies that provide manufacturing services for the production of integrated circuits (ICs) and other semiconductor devices. These foundries offer a range of services, including wafer fabrication, packaging, testing, and assembly, catering to the diverse needs of semiconductor companies across various industries. One of the key drivers for the Global Semiconductor Foundry Market is the increasing demand for advanced semiconductor solutions. Industries such as automotive, consumer electronics, telecommunications, and IoT devices require high-performance semiconductors to power their products. As these industries continue to evolve and demand smaller, faster, and more power-efficient devices, the need for advanced semiconductors has become paramount. Semiconductor foundries are investing heavily in advanced fabrication processes, such as FinFET, 3D transistors, and EUV lithography, to meet this demand. These technologies enable the production of chips with higher transistor densities, improved power efficiency, and enhanced performance. Another driver for the Global Semiconductor Foundry Market is the trend of outsourcing semiconductor manufacturing to specialized foundries. Companies are increasingly relying on foundries to handle the complex and capital-intensive process of semiconductor manufacturing. Outsourcing allows companies to focus on their core competencies, reduce costs, and access advanced process technologies without the need for significant investments in manufacturing facilities and equipment. Foundries provide expertise, scalability, and flexibility, enabling companies to bring their semiconductor designs to market quickly and efficiently.

Technological advancements also play a crucial role in driving the growth of the Global Semiconductor Foundry Market. The semiconductor industry is characterized by rapid innovation and continuous technological advancements. Foundries are at the forefront of adopting and implementing these advancements in their manufacturing processes. Advanced process technologies, such as smaller transistor sizes, new materials, and innovative packaging techniques, enable the production of more advanced and sophisticated semiconductor devices. Foundries that can offer access to these advanced technologies have a competitive edge in the market. The growing need for customization and reduced time-to-market is another significant driver for the Global Semiconductor Foundry Market. In today's fast-paced and competitive business landscape, companies are seeking ways to differentiate their products and bring them to market quickly. Foundries provide flexible manufacturing solutions that allow companies to customize their semiconductor designs according to specific requirements. This customization enables companies to differentiate their products in the market and cater to specific customer needs. Additionally, by leveraging the expertise and resources of foundries, companies can accelerate their product development cycles, respond quickly to market demands, and stay ahead of the competition.

In conclusion, the Global Semiconductor Foundry Market is experiencing significant growth driven by increasing demand for advanced semiconductor solutions, outsourcing trends, technological advancements, and the need for customization and reduced time-to-market. Foundries play a critical role in meeting these demands by providing specialized manufacturing services, advanced process technologies, and expertise. As the semiconductor industry continues to evolve and innovate, the role of semiconductor foundries will remain pivotal in enabling the production of cutting-edge semiconductor devices that power various industries and drive technological advancements.

The Global Semiconductor Foundry Market is segmented into Technology Node, Application, regional distribution, and company.

Based on its Application, the consumer electronics and communication segment dominated the Global Semiconductor Foundry Market and is expected to maintain its dominance during the forecast period. The consumer electronics and communication segment encompass a wide range of devices, including smartphones, tablets, wearables, and networking equipment. This segment's dominance can be attributed to the increasing demand for advanced semiconductor solutions in the consumer electronics industry, driven by factors such as technological advancements, rising disposable incomes, and changing consumer preferences. The rapid pace of innovation in consumer electronics, with the introduction of new features, higher performance requirements, and the need for power efficiency, has fueled the demand for advanced semiconductors. Foundries have been investing in research and development to develop specialized processes and technologies tailored to the specific requirements of consumer electronics applications. Additionally, the growing adoption of 5G technology and the expansion of the Internet of Things (IoT) ecosystem have further boosted the demand for semiconductors in the communication sector. The automotive segment is also expected to witness significant growth in the semiconductor foundry market, driven by the increasing integration of advanced electronics and semiconductor components in vehicles. The automotive industry is undergoing a transformation with the advent of electric vehicles, autonomous driving, and connected car technologies. These advancements require sophisticated semiconductors for applications such as advanced driver-assistance systems (ADAS), infotainment systems, and powertrain control. While the automotive segment is expected to grow, the consumer electronics and communication segment is projected to maintain its dominance due to the continuous demand for innovative and feature-rich electronic devices and the ongoing advancements in communication technologies.

Based on region, Asia-Pacific region dominated the Global Semiconductor Foundry Market and is expected to maintain its dominance during the forecast period. The Asia-Pacific region has emerged as a global hub for semiconductor manufacturing, with countries like China, Taiwan, South Korea, and Japan playing a significant role in the industry. The dominance of the Asia-Pacific region can be attributed to several factors. Firstly, the region benefits from a strong ecosystem that includes a robust supply chain, a skilled workforce, and a favourable business environment. This ecosystem has attracted major semiconductor foundries and enabled them to establish advanced manufacturing facilities in the region. Additionally, the Asia-Pacific region has a large consumer electronics market, with a growing middle class and increasing disposable incomes. This drives the demand for semiconductors used in smartphones, tablets, wearables, and other consumer electronic devices. Furthermore, the region has witnessed significant investments in infrastructure development, research and development, and technological advancements. Governments in countries like China and South Korea have implemented policies and initiatives to support the growth of the semiconductor industry, including providing financial incentives and fostering collaboration between industry players and academic institutions. The presence of leading semiconductor foundries, such as TSMC, Samsung Electronics, and UMC, further strengthens the dominance of the Asia-Pacific region in the global semiconductor foundry market. These foundries have established themselves as key players in the industry, offering advanced process technologies and specialized services to cater to the diverse needs of customers. Overall, the Asia-Pacific region's strong ecosystem, growing consumer electronics market, government support, and presence of leading foundries position it as the dominant region in the Global Semiconductor Foundry Market.

 

Major companies operating in Global Semiconductor Foundry Market are:

  • Taiwan Semiconductor Manufacturing Company Limited (TSMC)
  • Samsung Electronics Co., Ltd.
  • United Microelectronics Corporation (UMC)
  • GlobalFoundries Inc.
  • Semiconductor Manufacturing International Corporation (SMIC)
  • Vanguard International Semiconductor Corporation (VIS)
  • Tower Semiconductor Ltd.
  • X-FAB Silicon Foundries SE
  • Powerchip Technology Corporation
  • Dongbu HiTek Co., Ltd.

 

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“The Global Semiconductor Foundry Market is experiencing significant growth driven by the increasing demand for advanced semiconductor solutions, outsourcing trends, technological advancements, and the need for customization and reduced time-to-market. Semiconductor foundries play a crucial role in meeting these demands by providing specialized manufacturing services, advanced process technologies, and expertise. Industries such as automotive, consumer electronics, telecommunications, and IoT devices require high-performance semiconductors to power their products, and foundries invest heavily in advanced fabrication processes to meet this demand. The trend of outsourcing semiconductor manufacturing to specialized foundries allows companies to focus on their core competencies, reduce costs, and access advanced process technologies without significant investments in manufacturing facilities. Technological advancements, such as smaller transistor sizes, new materials, and innovative packaging techniques, enable the production of more advanced and sophisticated semiconductor devices. Foundries that can offer access to these advanced technologies have a competitive edge in the market. Additionally, the need for customization and reduced time-to-market drives companies to leverage the expertise and resources of foundries to accelerate product development cycles and stay ahead of the competition. Overall, semiconductor foundries play a pivotal role in enabling the production of cutting-edge semiconductor devices that power various industries and drive technological advancements.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Semiconductor Foundry Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology Node (10/7/5 nm, 16/14 nm, 20 nm, 28 nm, 45/40 nm, 65 nm), By Application (Consumer Electronics and Communication, Automotive, Industrial, HPC), By Region, By Competition”, has evaluated the future growth potential of Global Semiconductor Foundry Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Semiconductor Foundry Market.


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Semiconductor Foundry Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology Node (10/7/5 nm, 16/14 nm, 20 nm, 28 nm, 45/40 nm, 65 nm), By Application (Consumer Electronics and Communication, Automotive, Industrial, HPC), By Region, By Competition, 2018-2028

ICT | Oct, 2023

Global semiconductor foundry market is rising due to increasing demand for advanced microchips in various industries, such as electronics, automotive, and telecommunications in the forecast period 2024-2028.

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